VST Tillers Tractors reports net profit of Rs 121.5cr in FY24 despite market challenges
VST Tillers Tractors Ltd (VST), a leader in India’s farm equipment sector, has reported a significant surge in net profit for the fiscal year ended March 31, 2024. The company achieved a record net profit of ₹121.51 crore, marking a substantial 32% increase from the previous year’s ₹92.36 crore. This robust growth in profitability comes despite a 3.8% decline in revenue from operations, which totaled ₹968.05 crore compared to ₹1006.43 crore in the previous year.
The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also rose by 21% to ₹184.77 crore from ₹152.16 crore in the prior year, reflecting efficient operational management. For the quarter ending March 31, 2024, VST reported a turnover of ₹273.44 crore. The quarterly EBITDA stood at ₹50.22 crore, which is 17.69% of the turnover, slightly down from 18.23% in the same quarter of the previous year. However, the net profit margin improved marginally to 12.37% from 12.25%.
VST demonstrated remarkable resilience in maintaining profitability and cash generation amidst challenging conditions, including an adverse monsoon season that impacted its key markets. The company’s ability to sustain growth in profitability highlights its robust business model and operational efficiency.
Established in 1967 by the VST Group of companies, VST Tillers Tractors Ltd is renowned for driving farm mechanization and empowering Indian farmers. With over 55 years of legacy, VST is the largest Indian manufacturer of Tillers and 4WD Compact Tractors and a leading producer of other categories of Tractors, Engines, Transmission, Power Reaper, and Precision Components. The company also has a significant international presence, exporting products to European, Asian, and African markets.
VST’s performance in FY24 illustrates its strong market positioning and operational prowess, particularly in managing external economic pressures. As the largest Indian manufacturer in its sector, VST’s continued focus on innovation and market expansion is likely to drive future growth and sustain its leadership in the industry.